Walmart Stock Valuation

WMT
 Stock
  

USD 153.07  0.65  0.43%   

What would the acquisition value of Walmart be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Walmart, is its stock price multiplied by the total number of shares outstanding, calculating Walmart's enterprise value requires a different approach. It uses Walmart's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 11.8 B in 2022. Enterprise Value is likely to drop to about 231 B in 2022.
Walmart maintains a prevalent Real Value of $172.39 per share. The last-minute price of the company is $153.07. At this time, the company appears to be undervalued. Our model calculates the value of Walmart from examining the company fundamentals such as Return On Asset of 5.27 %, profit margin of 1.49 %, and Current Valuation of 469.2 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued securities and selling overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Walmart Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Walmart's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Walmart Most Recent Valuation Data

Price Book
5.73
Price Sales
0.69
Forward Annual Dividend Yield
0.0148
EBITDA
31.6 B
Dividend Share
2.23
Ex Dividend Date
2022-12-08
Undervalued
Today 153.07
Please note that Walmart's price fluctuation is very steady at this time. Calculation of the real value of Walmart is based on 3 months time horizon. Increasing Walmart's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Walmart is useful when determining the fair value of the Walmart stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Walmart. Since Walmart is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Walmart Stock. However, Walmart's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
137.76
Downside
172.39
Real Value
173.87
Upside
Estimating the potential upside or downside of Walmart helps investors to forecast how Walmart stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Walmart more accurately as focusing exclusively on Walmart's fundamentals will not take into account other important factors:
Earnings
Estimates (15)
LowProjected EPSHigh
6.366.416.49
Details
Hype
Prediction
LowEstimated ValueHigh
152.28153.76155.24
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.451.471.49
Details
19 Analysts
Consensus
LowTarget PriceHigh
153.00171.19190.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Walmart's intrinsic value based on its ongoing forecasts of Walmart's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Walmart's closest peers. When choosing an evaluation method for Walmart, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Walmart Valuation Drivers Correlation

Many accounts on the financial statements of Walmart are highly interrelated and sometimes correlated. Consequently, when conducting Walmart's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Walmart
Click cells to compare fundamentals

Walmart Valuation Trend

Knowing Walmart's actual value is paramount for traders to make sound investment determinations. Walmart's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Walmart's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Walmart's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Walmart Market Cap

Walmart is rated first in market capitalization category among related companies. Market capitalization of Discount Stores industry is at this time estimated at about 650.59 Billion. Walmart totals roughly 411.72 Billion in market capitalization claiming about 63% of equities under Discount Stores industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Walmart Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Walmart's current stock value. Our valuation model uses many indicators to compare Walmart value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Walmart competition to find correlations between indicators driving Walmart's intrinsic value. More Info.
Walmart is rated first in last dividend paid category among related companies. It is rated first in five year return category among related companies reporting about  3.25  of Five Year Return per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Walmart by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walmart's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walmart's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Walmart's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Walmart and how it compares across the competition.

About Walmart Valuation

The stock valuation mechanism determines the current worth of Walmart on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Walmart. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Walmart based exclusively on its fundamental and basic technical indicators. By analyzing Walmart's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Walmart's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Walmart. We calculate exposure to Walmart's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Walmart's related companies.
Fiscal Year End
January
Industry
Discount Stores
Concentration
Hypermarkets & Super Centers
Full Time Employees
2.3 M
Service Category
Food & Staples Retailing
Employer Id Number
71-0415188
Last ReportedProjected for 2022
Gross Profit109 B96.1 B
Profit Margin 2.39  2.95 
Walmart's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Walmart's value is low or high relative to the company's performance and growth projections. Determining the market value of Walmart can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Walmart represents a small ownership stake in the entity. As a stockholder of Walmart, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Walmart Dividends Analysis For Valuation

Dividends per Basic Common Share is likely to gain to 1.90 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (7.8 B) in 2022. . Walmart Earnings per Basic Share are comparatively stable at the moment as compared to the past year. Walmart reported Earnings per Basic Share of 4.90 in 2021. Earnings per Diluted Share is likely to gain to 5.10 in 2022, whereas Earnings before Tax are likely to drop slightly above 18.2 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-7.2 B-7.8 B
Dividend Yield 0.027  0.0215 
Dividends per Basic Common Share 1.76  1.90 
There are various types of dividends Walmart can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Walmart shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Walmart directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Walmart pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Walmart by the value of the dividends paid out.

Walmart Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Walmart does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.19
Revenue Growth8.70%
Payout Ratio68.62%
Enterprise Value To Ebitda14.85
Enterprise Value To Revenue0.78

Walmart Current Valuation Indicators

Valuation refers to the process of determining the present value of Walmart and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Walmart we look at many different elements of the entity such as Walmart's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Walmart's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Walmart's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Walmart, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Walmart's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Walmart's worth.
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When running Walmart price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.
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Is Walmart's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walmart. If investors know Walmart will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walmart listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.24
Market Capitalization
413.7 B
Quarterly Revenue Growth YOY
0.087
Return On Assets
0.0527
Return On Equity
0.11
The market value of Walmart is measured differently than its book value, which is the value of Walmart that is recorded on the company's balance sheet. Investors also form their own opinion of Walmart's value that differs from its market value or its book value, called intrinsic value, which is Walmart's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walmart's market value can be influenced by many factors that don't directly affect Walmart's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walmart's value and its price as these two are different measures arrived at by different means. Investors typically determine Walmart value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walmart's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.